Series 39 – Direct Participation Programs Principal Exam
The Series 39 exam — the Direct Participation Programs Principal Qualification Exam (DP) — assesses the competency of an entry-level principal to perform their job as a direct participation programs principal.
The exam measures the degree to which each candidate possesses the knowledge needed to perform the critical functions of a direct participation programs principal, including the rules and statutory provisions applicable to the supervisory management of a broker-dealer that limits its products to direct participation programs.
In addition to the Series 39 exam, candidates must pass the Securities Industry Essentials (SIE) Exam and either the General Securities Representative Exam (Series 7) or the Direct Participation Programs Representative Exam (Series 22) to hold the Direct Participation Programs Principal registration. For more information about the Series 39 exam, refer to FINRA Rule 1210 and FINRA Rule 1220(a)(12).
The Series 39 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required.
The outline is comprised of the three major job functions of a direct participation programs principal. The table below lists the allocation of exam items for each major job function.
|Major Job Functions||Number of Exam Items|
|(F1) Structure and Regulation of Direct Participation Program (DPP) Offerings||46|
|(F2) Sales Supervision, General Supervision of Employees, Regulatory Framework of FINRA||32|
|(F3) Compliance with Financial Responsibility Rules||22|
Candidates must be associated with and sponsored by a FINRA member firm or other applicable self-regulatory organization (SRO) member firm to be eligible to take FINRA principal-level qualification exams. For more information on registration requirements, refer to FINRA Rule 1210.
For more information on the registration process, see Register a New Candidate.
Covered supervisory activities and products include regulatory compliance over sales of:
- direct participation program limited partnerships (e.g., real estate, oil and gas, and equipment leasing),
- limited liability companies and
- S corporations.
In addition to sales supervision, the Series 39 qualifies a principal for the overall supervision of a firm’s investment banking and securities business — including compliance, underwriting and advertising — for those activities specially covered by each supervisory principal’s license.